Counter interest rate rises with 'financial foresight'

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Counter interest rate rises with 'financial foresight'

Thu 5th Jul 2007

Borrowers are being encouraged to consider putting into place a number of 'plans' to counter the impact that an interest rate rise might have on their financial situation.

Online comparison site moneysupermarket.com says that consumers should pay off as much debt as possible to counter the expected quarter point interest rate hike which the Bank of England will implement at its monthly meeting

With inflationary pressures needing to be edged closer towards the government's two per cent target, with the UK inflation rate currently standing at 2.5 per cent, an interest rate rise appears likely.

Consequently, moneysupermarket.com also advises that borrowers should cut out any unnecessary expenditure and pay off expensive debts with a zero per cent balance transfer card.

Stuart Glendinning, managing director at moneysupermarket.com, said: "A base rate rise is inevitable sooner rather than later, but people ought not to panic."

He added: "Review your financial situation rationally as there are several logical steps that can be taken to alleviate financial distress."

Organisations such as the Citizens Advice Bureau or National Debtline should be contacted if consumers are in severe financial trouble.

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